UBS sets sights on profit
(18 August 2008 – Europe) UBS, one of the banks hit hardest by the credit crunch, has indicated an intention to return to profit in 2009.
Peter Kurer, UBS’s chairman, said in an interview with Swiss Sunday newspaper NZZ am Sonntag that the bank will be profitable again in 2009.
For its second quarter, the Swiss bank posted a net loss of Sfr358 million (A$377 million)). Kurer said the current situation faced by the bank could be compared to the aftermath of a severe storm.
One must first remove the fallen trees, then tidy up the house and cellar, and in the third phase, bring the shine back to the house, he continued, adding that he believes the bank to be now in the second phase.
He is looking to tidy up the bank’s internal operations by the end of the year and indicated that, based on experience, it would take two to three years to bring the shine back to the house.
UBS has so far written down around US$42.5 billion (A$49 billion) on its sub-prime-related assets.
In its most recent quarterly result announcement, UBS announced that results were impacted by realized and unrealized losses of US$5.1 billion on legacy risk positions, mainly on exposures related to US residential real estate related securities and other credit positions.
In the second half of this year, UBS did not expect to see any improvement in the adverse economic and financial market trends that affected this quarter's results. UBS said that it will continue its program to reduce personnel levels, costs and risk concentrations.
For its second quarter, the Swiss bank posted a net loss of Sfr358 million (A$377 million)). Kurer said the current situation faced by the bank could be compared to the aftermath of a severe storm.
One must first remove the fallen trees, then tidy up the house and cellar, and in the third phase, bring the shine back to the house, he continued, adding that he believes the bank to be now in the second phase.
He is looking to tidy up the bank’s internal operations by the end of the year and indicated that, based on experience, it would take two to three years to bring the shine back to the house.
UBS has so far written down around US$42.5 billion (A$49 billion) on its sub-prime-related assets.
In its most recent quarterly result announcement, UBS announced that results were impacted by realized and unrealized losses of US$5.1 billion on legacy risk positions, mainly on exposures related to US residential real estate related securities and other credit positions.
In the second half of this year, UBS did not expect to see any improvement in the adverse economic and financial market trends that affected this quarter's results. UBS said that it will continue its program to reduce personnel levels, costs and risk concentrations.
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